When it comes to disclosing your offshore bank accounts to the IRS, waiting is a bad idea. In June 2014, changes to the IRS's Offshore Voluntary Disclosure Program raised the penalty for having offshore assets that the IRS discovers without your voluntary disclosure.
In a previous post we reminded our California readers that June 30 was the deadline to file their Report of Foreign Bank and Financial Accounts, or FBAR, to the Internal Revenue Service. The report is required for anyone with more than $10,000 in a foreign or offshore account.
Individual taxpayers in Sacramento no doubt have April 15 locked in their brains. Those who are self-employed also have June 15, Sep. 15 and Jan. 15 in their permanent memory banks. For those who have foreign or offshore bank accounts that earn interest, there is another date of which they should be aware.
In an earlier post, our San Francisco Bay area readers learned about the Internal Revenue Service's increased efforts for compliance regarding earnings in foreign bank accounts. In light of that, why would federal prosecutors drop charges against a San Francisco man?
For several years the Internal Revenue Service has been cranking up the heat on U.S. taxpayers in California and elsewhere who have unreported income from foreign bank accounts. Many of those accounts are in Switzerland.